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If an employee submits W-4 withholding allowance changes to you, you’ll want to update the employee’s tax information in your QuickBooks payroll system as soon as you receive the new W-4. Changes made to the W-4 form by your employee affect the amount of federal and state income tax withheld from his pay and must be reflected during the first pay period that follows the employee’s adjustments. The QuickBooks system allows you to quickly update an employee’s tax information with a few simple steps.

1.

Click the “Employee” tab from your QuickBooks home screen.

2.

Select the name of the employee who requires the tax information change.

3.

Select the “Main/Tax Setup” button.

4.

Make changes to the federal or state tax fields. If the state you operate in uses the employee’s W-4 withholding allowances to determine state withholding, make the same changes to the federal and state tax fields. If your employee changes his W-4 allowances to claim exempt status, select “Yes” under the “Exempt” option in the Tax Setup screen.

5.

Click the “OK” button to save the tax information changes.

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About the Author

With a background in taxation and financial consulting, Alia Nikolakopulos has over a decade of experience resolving tax and finance issues. She is an IRS Enrolled Agent and has been a writer for these topics since 2010. Nikolakopulos is pursuing Bachelor of Science in accounting at the Metropolitan State University of Denver.

Nikolakopulos, Alia. (n.d.). How to Change Employee Tax Information in QuickBooks. Small Business - Chron.com. Retrieved from http://smallbusiness.chron.com/change-employee-tax-information-quickbooks-22377.html